As per unconfirmed sources a message from ICAI to CBDT is doing rounds on social media and whatapp groups, in which ICAI president K. Raghu has suggested to CBDT that

a)     the due date of filing return of income under section 139(1) for assessees mentioned under clause (a) of Explanation 2 to section 139
(1) be extended in line with the extension granted for submission of tax audit report under section 44AB of the Act.

b)     Since the provisions applicable to every Assessment year are clarified by the relevant Finance Act well in advance, it is further suggested that all ITR forms and forms of Audit reports be notified well in advance by 1st April every year, to avoid such situations.

We have not found the below representation hosted on ICAI Website so readers are advised to confirm from official sources before relying on the same.

Full text of such Message is as follows :-

ICAI/DTC/2014-15/Rep -09                                           

To, Shri. K.V.Chowdary, Chairman, Central Board of Direct Taxes, Department of Revenue, Ministry of Finance, Government of India, North Block, New Delhi–110 001

Dear Sir,

At the outset, let me thank you for sparing your valuable time and sharing your wisdom with our Council on 27th August, 2014 at the headquarters of ICAI. Since ICAI’s prerogative is to strengthen the relationship between the taxpayers and the Department, we are duty bound to once again bring to your kind notice, the difficulties being faced by the assessees who are required to get their accounts audited under section 44AB of the Income-tax Act, 1961.

The new forms were notified through Notification no. 33/2014 on 25/7/2014. As there were massive changes in the new forms prescribed by the CBDT, certain genuine concerns were raised by our members, regarding the date of effectiveness of the new formats which were brought to your kind notice. It was suggested that the new formats of audit report be made effective from the Assessment year 2015-16 and not Assessment year 2014-15. Alternatively, it was suggested that the due date for furnishing tax audit reports for the Assessment Year 2014-15 may be extended to 30th November, 2014.

ICAI’s first recommendation of making the new formats effective from the AY 2015-16 did not find favour with the Department but the second alternative regarding extension upto 30th November was favourably considered. ICAI had given the second alternative presuming that the date of filing return of income under section 139(1) would also be extended since both the dates are inseparable. However, the extension was granted only for the due date of obtaining and furnishing tax audit reports without extension of due date of filing return of income. While we appreciate the speed with which the efforts were made to address the concerns of ICAI, however, non extension of due date of filing return along with the date of furnishing tax audit report has been a cause of major concern amongst the assessees, which was not the intention of the representation made by ICAI. Through this letter, we wish to bring the same to your kind attention:

“Specified date” of furnishing tax audit report under section 44AB is directly linked with “due date” of filing return of income under section 139(1)
“Section 44AB of the Income-tax Act, 1961 provides that every person-

(a)…     ….

(d)…

gets his accounts audited of such previous year audited by an accountant before the “specified date” and furnish by that date the report of such audit in the prescribed form duly signed and verified by an accountant and setting forth such particulars as may be prescribed:

Provided….

Provided further….

Explanation- For the purposes of this section-

(i)  ……….

(ii) “Specified date” in relation to the accounts of the assessee of the previous year relevant to an assessment year, means the due date of furnishing the return of income under sub-section (1) of section 139.”  (Emphasis supplied)

“Explanation 2 to section 139(1) provides for the meaning of “due date”. As per Clause (a) of the said Explanation, “due date” means where the assessee (other than as assessee referred to in clause (aa)) is –

a)     Company; or

b)     A person(other than a company) whose accounts are required to be audited under this Act or under any other law for the time being in force; or

c)      A working partner of a firm whose accounts are required to be audited under this Act or under any other law for the time being in force;

the 30th day of September of the assessement year.”

The order No. F.No.133/24/2014-TPL dated 20th August, 2014 issued by the Department under section 119 provided for extension of the due date for obtaining and furnishing of the report of audit under section 44AB of the Act for Assessment Year 2014-15 in case of assessees who are not required to furnish report under section 92E of the Act from 30th day of September, 2014 to 30th November, 2014.

Since the due date of obtaining and furnishing tax audit report under section 44AB is directly and clearly linked with the due date of filing of return of income under section 139(1), the aforementioned order has caused unrest and confusion amongst the assessees. There is a very strong view that extension of due date of furnishing tax audit reports automatically stands extended with the due date of filing return of income under section 139(1) since the date of furnishing tax audit report is linked with and is dependent upon the “due date” of filing  return of income under section 139(1).

Concerns of a genuine taxpaying non-corporate assessees

For majority of the asessees who are required to get their accounts audited under section 44AB, the due date of filing return of income and tax audit report is presently 30th September. The due date for filing return of income of large corporates is already 30th November. Concerns are being raised by the non- corporate assessees, who are equally law abiding and thus have been in past finalizing their accounts after considering the issues raised by the tax auditors. Such assessees rely on the tax audit report for computation of total income after knowing their disallowances like disallowance u/s 40(a) etc. Since the tax audits are not completed (nor likely to be completed by 30th September), these assessees are finding it difficult to file their income tax returns.

Although we are aware that such assessees can file a revised return under section 139(5) once the tax audit report is completed, this however would increase the compliance burden of assessee who would have to do the whole process again. On the other hand, if the Department completes its assessment before the expiry of one year from the end of the relevant Assessment year i.e. the time provided under section 139(5), the genuine assessee would have no choice, but to face penal consequences for almost no fault on his own part.

Norm followed in earlier years

Even though, prior to the amendment made by the Finance Act, 2008 when the due date of filing return of income under section 139(1) was NOT directly linked with the date of furnishing tax audit report, the extension of time, if any, was granted for both e-filing of returns and for tax audit reports.

Also, in the year 2006-07 when the tax audit report was revised last through Notification No.208/2006 dated 10.8.2006, the due date of filing tax audit reports and their corresponding ITR were extended to 30th November, 2006.

It is the first occasion in past several years when the due date of furnishing tax audit report has been extended without extension of due date of filing of returns. This is a major reason for the assessees to believe that the intention of the lawmakers is to extend both the due date of filing return of income and the tax audit report.

Efforts of ICAI to supplement the initiatives of the Department

We all are aware, the formats of tax audit reports were issued very late i.e 25th July 2014 and thereafter approximately a month’s time was taken by the Department to make the utility available to the auditors. Despite the same all efforts are being made by ICAI, as a partner in nation building, to bring awareness among the auditors and auditees:

a)     Guidance Note on tax Audit under section 44AB of the Income-tax Act, 1961 has been revised to guide the members regarding the new reporting responsibilities.

b)     Tax Awareness programmes are being organized by ICAI for creating awareness among the members all over India.

Suggestion

In the interest of the nation as a whole we suggest and request that:

a)     the due date of filing return of income under section 139(1) for assessees mentioned under clause (a) of Explanation 2 to section 139
(1) be extended in line with the extension granted for submission of tax audit report under section 44AB of the Act.

b)     Since the provisions applicable to every Assessment year are clarified by the relevant Finance Act well in advance, it is further suggested that all ITR forms and forms of Audit reports be notified well in advance by 1st April every year, to avoid such situations.

We are hopeful for a positive consideration of our suggestion.

With best regards

Yours faithfully,                                                            

CA. K. RAGHU

Source –

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Tags : form 3cd (108) Income Tax Return (463) ITR (632) Section 44AD (130) Tax Audit (322) Tax Audit Report (200) tax auditor (138)

0 responses to “Extend ITR due date ; Release Audit Forms & ITR before 1st April every year – ICAI to CBDT”

  1. RiddhiSiddhi says:

    Mr. Y.JANARDHANA REDDY,

    You are totally wrong to compare Medical Profession with Tax Profession as far as your context of comment is concerned….

    As far as tax audit report in Income Tax is concerned it is independent of Return filing process… It is optional AND NOT COMPULSORY to accept by assessee any comment made and/or dis-allowance of expenses stated in the tax audit report.. An assessee may dis-agree with any qualification made by auditor…

    Tax Audit report u/s 44AB is purely for facilitating Assessing Offices to make assessment with/on the basis of his own expertise/knowledge & wisdom AND NOT TOTALLY ON THE BASIS OF TAX AUDIT REPORT U/S 44AB.

    Hence the importance of Tax Audit Report u/s 44AB is very less in the process of Income Tax Return Filing…

    Hence obtaining Income Tax Audit Report u/s 44AB is totally extra financial as well as physical burden on the Citizen of India…

  2. Y.JANARDHANA REDDY says:

    WHEN A PERSON GO ON AN OPERATION, IT IS NECESSARY FOR A DOCTOR TO CHECK UP B.P,SUGAR AND OTHER HEALTH CONDITIONS OF THE HUMANBEING.SIMILARLY FOR AN AUDITOR TO CONDUCT A AUDIT U/S 44AB IS SIMILARLY LIKE A DOCTOR.HE CAN’T FILE ONLY INCOME TAX RETURN AT ONE TIME & TO FILE ATR AND OTHER TIME. THE PROCESS IS TO BE COMPLETED AT ONE TIME.

  3. MANDEEP SINGH says:

    sir why you are asking to extend due date to file ITR. We should demand to delete audit reports u/s 44AB for Non-corporate assessees.

  4. NSG says:

    Dear Mr.BSK Rao…

    Do you have any ……….problem.Please do not make MAD COMMENTS not suitable to the subject under discussion.

  5. A.ANBALAGAN says:

    pl find a solution for this.

  6. Masood Ali says:

    This is rediculous, Due date for IT returns should also be extended.

  7. pkb says:

    Nothing doing, the arrogant officials has developed habit of not hearing ICAI & Members. The only way out to teach them , do not ask them to rectify themslves. Directly file PL in court in bulk and let the court direct them to rectify themselves. It is realy pity that the thing a child can understand, the arrogant officials are not ready to hear.

  8. B S K RAO says:

    we are duty bound to once again bring to your kind notice, the difficulties being faced by the assessees who are required to get their accounts audited under section 44AB of the Income-tax Act, 1961.

    In the above para the word used “difficulties being faced by the assessees” is not intention of ICAI (Financials). It should be re-read as under “difficulties being faced by its members”.

  9. J K Arora says:

    No body likes to file ITR before completion of Tax Audit because there are a large no of issues like allowability of expenses, disclaimers by auditors and new details to be provided to auditor in new Form3CD are the issued which require time. Government notified form on 25-7-2014 and provided utility on 20-8-2014. Practically only 41 days are available for auditors to complete the job of all the clients is it practical? It is curtailing right of the citizens

  10. CA Gajanand Gupta says:

    We have formed a national level CA Federation and its Headquarter is in Jaipur having more than 900 members on Facebook. We moved an application for registration to ROC but sorry to inform all of you, that ROC has denied on the ground that ICAI has objection to form any CA Union or any body could not use the word “CHARTERED ACCOUNTANT”. I fully agreed with views of Mr. Santhanakrishnan

  11. satish boob says:

    Friends, The Hon. CBDT if gives such an affidavit as called for by Hon. Court, it is a clear cut contravention of the definition of specified date under explanation (ii) of sec 44AB. AND the explanation 2(a)(ii) of section 139(1) about due date AND explanation (bb)of section 139(9) of the Income Tax Act. All the above three section are in force. It clearly indicates the undoubted interlink between filing of TAR and ITR which should be the common date and nothing else. Please note.

  12. kailash goyal says:

    Sir ,

    another problem is being faced by the Tax payers is regarding very old demand of the Tds and non avilability of justification reprot to correct the same . No one is giving head to the problems of assesse inspite of various representation . Also fes of rs. 200/ per day for late filing of tds returns . As every one know that if epayement is made today then oltas gives status only after 48 hours . Thus assesse made payement on 15th of july unnessary has to pay the fees of rs. 400/ for delay in filing the return .

  13. Avinash Rajopadhye says:

    Having read the above it is a glaring example of “non compliance” of substantive provisions of The Income Tax Act 1961[enacted by Parliament] by the CBDT.This is called CBDT “sheer activism”.

  14. kailash goyal says:

    We are surprised to note the manner in which the ICAI is functioning why the ICAI do not make strong representation to the Govt. that rules Forms are notified without much application of wisdom and their practical aspects in INDIAn Enviorement at a very short notice and then the Govt. Machinery wants their complaince within a very short time . Now in modi
    Raj we at least expect that the govt. should Act for the peopel and not for the sole benifit of Govt.MAchinery and scrap all the laws which are of no use .

  15. santhanakrishnan says:

    Sir,
    Filing of return and tax audit report are inseparable.ICAI representation have no effect always as expected. New accounting standards announced by IT dept., corporate affairs, service tax will be levied for level playing field services, council members always rush to welcome the move. Unlike lawyers, there is no unity and strong forum for CA members.

    SSK

  16. CA Pramod says:

    What is the fate of various PILs filed in courts?

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